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					2009 Full Year Results

        2 March 2010
          Questions, questions, questions...
      What is the reasoning behind                     How long do you expect                      When will we see the maturing of the
 giving a 25% stake in Rastreator to              internet and price comparison              aggregator product cycle for motor, as average
Mapfre? Do you expect an uptick in sales          sales to continue growing and               discounts fall will customers stay with existing
 as a result? Might y do the same
                 g you                           where do you see growth coming                  providers and how will confused react?
          in other countries?                            from thereafter?

James Quin                                                               Peter Eliot          Greig Paterson, KBW           Jelena Bjelanovic,
                  Paul Goodhind                                                                                                  BoA ML
   Citi          Redburn Partners           Based on E&Y’s ultimate loss
                                                                                             ,
                                                                                Dhruv Gahlaut, HSBC
                                         ti    how much reserve release
                                       ratios, h         h         l                                                   To what extent is your
       Can you compare and              and profit commission has yet to
                                                                                   How have ancillary           ancillary income at risk from the
contrast the marketing strategy                flow into earnings?
                                                                                   revenues at the                proposals in Lord Jackson’s
of your overseas operations with
                                                                               international operations              review of civil litigation
  the UK strategy 5 years ago?
                                        Andrew Crean, Autonomous
                                               Crean                                 developed?                               costs?
                                                                                                                    Jonathan Hekster,
        At this moment in time, due             James Shuck, Jefferies                The AA suggest               Bernstein Research
  to market conditions, the increases in                                            that rates hardened
 premiums etc. is it worthwhile increasing
                                         g             How is price              g         y
                                                                               significantly in 09. What has                    Admiral’s
                                                                                                                       What is Admiral s split
      the retention of underwriting?            comparison affecting the         been the corresponding           between standard and non-
                                             industry and what impact is it        increase for Admiral?         standard risks and how much
                                              having on your competitive                                         of your loss ratio advantage is
  Fahad Changazi, UBS                                 advantage?                    Rakshit Ranjan,                     due to this mix?
                                                                                    Execution Noble
     Have you been affected by           Confused margins have fallen                                             Paul Lloyd, Credit Suisse
                                       steeply, when will they become               Given the greater
 the recent rise in personal injury                                           pricing information available
  claims that appears to have led                untenable?                                                    How do you optimise
                                                                              in the US, will Admiral reach
      competitors to raise their
          p                                                                       profitability here more        p           y
                                                                                                             the profitability of the
          premium rates?              Hamish Chalmers, Macquarie                                           business given the tension
                                                                                         quickly?
                                                                                                           between underwriting and
 Tom Dorner, Oriel                                                         Andy Broadfield, Morgan Stanley        ancillaries?
                                                                                                                                                    2
   Agenda

Questions, questions, questions.... we will try to provide some answers

     Kevin Chidwick, Finance Director
        Highlights
        Results summary
        Price comparison

           Stevens
     David Stevens, Chief Operating Officer
         UK Car insurance market
                 What’s happening now?
                 What might happen in the future?

     Henry Engelhardt, Chief Executive Officer
         y   g
         International
         Summary



                                                                          3
Admiral is still different

                       2004   2005   2006   2007   2008   2009


 Highly profitable      ✔     ✔      ✔      ✔      ✔      ✔

 Fast growing           ✔     ✔      ✔      ✔      ✔      ✔

 Low risk profits
                        ✔     ✔      ✔      ✔      ✔      ✔

                        ✔     ✔      ✔      ✔      ✔      ✔
  Strongly cash
  generative


                                                                 4
    Highlights



   Profit before tax up 7% at £216 million (2008: £203 million)
   Turnover up 18% at £1.08 billion (2008: £0.91 billion)
   Vehicle count up 19% to 2.08 million (2008: 1.75 million)
   Profit from UK car insurance up 15% to £207m (2008: £180m)
   UK ancillary income steady at £72 per vehicle
   Confused.com profit £26 million (2008: £26 million) revenue increased 21%
   New and extended reinsurance deals
   Second interim dividend per share of 29.8p full 2009 dividend 57.5p



                                                                                5
       Strong growth

                                                            Historical annual turnover (£m)(1)

                                                                                                                                                 1,077
                                                                                                                                                 1 077


                                                                                                                                          910

               5 year CAGR = 15%                                                                                                  808

                                                                                                                          698
                                                                                                                  627
                                                                                                          540

                                                                                                  422
                                                                                          373
                                                                                  320
                                                                          262
                                                                  207
                                                        150
                                     100      120
                            73
                   47
         18


     1993     1994      1995     1996      1997     1998        1999    2000    2001    2002    2003    2004    2005    2006    2007    2008    2009



(1) Turnover comprises total premiums written + other revenue

                                                                                                                                                         6
Admiral Group profits

           Annual profit before tax (£m)                              Key drivers
                                           £215.8m
                             £202.5m        11%          Price comparison
              £182.1m          13%

 £147.3m         20%

   16%                                                   UK car insurance



    82%         78%            88%           96%
                                                         Non UK car insurance


    2%              2%         1%            -3%
                                 -2%
                                                   -4%
  2006         2007           2008          2009
 Price comparison             UK car insurance           Overall result             7%
 Non-UK car insurance         Other



                                                                                         7
UK car insurance profit
    UK car insurance - annual profit before tax (£m)                          Key drivers

                                                   £206.9m
                                                                Investment income
                                                     4%
                                £179.9m
                                                     15%
                                      10%                       Underwriting margins
                £142.2m
                                      17%            26%
                                                                Reserve releases
 £121.1m            12%
     8%             16%               19%
     16%
                    15%
     16%                                                        Profit commissions

                                                     51%
                                      49%
                    53%
     55%
                                                                Ancillaries


     5%             4%                5%              4%

    2006            2007           2008              2009
Investment income      Underwriting         Profit commission
                                                                UK car insurance            15%
Ancillary              Other (instalment income)



                                                                                                  8
UK Car insurance – how will reserves & profit commissions flow
through into earnings?


    Conservative reserving (Dec 09)                                   Increasing profit commissions

                                               83 

                                                                               2007       2008         2009
                               76 
                 74                                         Reserve
                                                                              £29.5m     £38.0m       £31.3m
  72                                                          l
                                                            release

  72                            72                          Profit
                 71                             71                            £20.4m     £34.7m       £54.2m
                                                            commission

                                                            PC as % of
2006           2007           2008            2009                             69%        91%         173%
                                                            release
E&Y projected accident year ultimate loss ratios (Dec 09)
Admiral booked accident year loss ratios (Dec 09)




                                                                                                               9
       UK Car insurance – ancillary contribution up 18% to £126 million


 Ancillary contribution per active vehicle(1)                         Sources of UK ancillary income


                                                                     1. Compulsory: legal cover


                                                                     2.Optional products: breakdown, car
                                                                     hire, & personal injury

                                       £69.0    £70.7    £72.0       3 Oth Fees: Ad i f
                                                                     3. Other F                     t d
                                                                                     Admin fees, wasted
      £68.5            £69.3
                                                                     leads, BI & car hire referrals


                                                                    Portfolio of income sources

                                                                    Grows in line with vehicle base
    2005             2006            2007      2008     2009
                                                                    Contribution per vehicle stable



(1) Before allocation of overhead expenses

                                                                                                           10
      UK price comparison market – high media spend &
      growth continue
     Share of car insurance new business*                                                                  Media Spend** (£m)
                                                                                                                                  In 2009, TV cost per
                                                                                                                                  thousand viewers
                                                         67%                                                                      was down 15% YOY
Total online                                                                                                 £34m
                                  62%                                                                                    £32m
                                                                                                                                     £30m       £31m
                                                                                                               9
            51%                                          22%
                                   24%                                                            £23m
                                                                                                        7
                                                                                       6                                  7
            27%
                                                                                                                                        5           5
                                                                                      £15m
                                                         45%
                                   38%
            24%



            2007                  2008                  2009                          H1 07        H2 07      H1 08       H2 08      H1 09       H2 09
                                                                                     Confused                 Moneysupermarket*        Go Compare
               Price comparison ("PC")
                                                                                     Compare The Market       Uswitch*                 Tesco Compare
               Internet (Non PC)                                                     Beathatquote             People's Champion        Confidentcover
                                                                                              Number of price comparison sites spending on advertising
                                                                                              N b     f i           i     i        di       d    ii

* Source: Management estimate
** Source: Nielson , 50% of Moneysupermaket and Uswitch allocated to car insurance
                                                                                                                                                         11
UK price comparison market... still slogging it out!




                                                       12
       UK price comparison, 2009 was better than expected
       for Confused
Confused market share of car insurance PC           Confused profits (£m)
             (% estimate)

                                                    60%
                                                                  53%
 62%
        54%                                  45%
               41%                                                           39%
                     32%    32%    31%
                                                                                        32%
 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09
 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09                          36.7
                                                              36 7
         non-
Confused non-car insurance revenues as
           % total revenue                                                  25.6        25.7
                                                   23.1


                                            6.9
                            22%    24%
                     22%
              19%                           2005   2006       2007          2008        2009
14%    16%

                                                   Profits (£m)         Profit margin

H107   H207   H108   H208   H109   H209

                                                                                               13
Dividend
             Full year dividends                                       H2 dividends

                                          p
                                      57.5p
                          52.5p                                              2007     2008      2009
                                                                               £m       £m        £m
             43.8p
                                                   Total equity               238       275       301
                                       31 0
                                       31.0
36.1p                      27.8                    Goodwill                   (62)     (62)      (62)
              21.9                                 Solvency capital           (85)    (113)     (129)
18.1                                                                            91      100       109

                                                   Buffer                     (25)     (25)      (25)
                           24.6        26.5
              21.9                                 International 
                                                   International
18.0
18 0
                                                   Expansion                   (5)       (5)      (5)
                                                   Dividend                    61        70       79
2006          2007         2008        2009
  Normal dividend        Special dividend

                                     H2 2009 – 29.8p per share
       Ex-dividend – 10 March 2009, Record date – 12 March 2009 , Payment date – 1 April 2009

                                                                                                        14
UK car insurance market




                          15
UK car insurance market




        What’s happening now?
           Claims
           Premiums
           Market profitability

        What might happen in the future?




                                           16
                            What’s happening now? Claims

      “To what extent have you been affected by the recent rise in bodily injury claims announced by
      several of your competitors?”

                    Admiral’s 12 month rolling average claims frequency                                                                                                                                             Admiral’s bodily injury claims as % of total claims
                                                                                                                                                                                                                                  (on12 month rolling average basis)




                                                                                                                                                                                                    total claims 
       frequency




                                                                                                                                                                              Bodily Injury as % of t
Claims f




                                               ct‐06




                                                                                     ct‐07




                                                                                                                         ct‐08




                                                                                                                                                             ct‐09
                             pr‐06




                                                                 pr‐07




                                                                                                       pr‐08




                                                                                                                                           pr‐09
                    an‐06




                                                        an‐07




                                                                                              an‐08




                                                                                                                                  an‐09




                                                                                                                                                                      an‐10
                                      ul‐06




                                                                            ul‐07




                                                                                                                ul‐08




                                                                                                                                                    ul‐09
                                     Ju




                                                                           Ju




                                                                                                               Ju




                                                                                                                                                   Ju
                                              Oc




                                                                                    Oc




                                                                                                                        Oc




                                                                                                                                                            Oc
                            Ap




                                                                Ap




                                                                                                      Ap




                                                                                                                                          Ap
                   Ja




                                                       Ja




                                                                                             Ja




                                                                                                                                 Ja




                                                                                                                                                                     Ja



                                                                                                                                                                                                                    Jan‐06 Jul‐06 Jan‐07 Jul‐07 Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10
                               Total claims                              Bodily injury  claims                              Non‐bodily  injury  claims



                       What                           claims?”
                      “What was the impact of snow on claims?


                                                                                                                                                                                                                                                                                     17
      What’s happening now? Premiums

“AA’s survey suggest that rates have hardened significantly in 2009. What was Admiral’s experience?”

                2009 – Cumulative premium changes (%)


                                                                     23 
                                                                     23                         Admiral’s
                                                                                     Changes to Admiral s
                                                                                      average premium
                                                                                                   2008   2009
                                                                                Average written 
                                                                        14 
                                                                        14      premium (per       £435   £432
                                                                        13      vehicle)
                                                                                Change                    ‐0.6%
                                                                        12 
                                                                                Admiral’s
                                                                        8        annual
                                                                                increase




       Q1 09                Q2 09             Q3 09             Q4 09

      AA shoparound  comp      Deloitte   Confused / EMB   Admiral       Igo4


                                                                                                                  18
     Admiral portfolio progressively more standard

  “What is Admiral’s split between standard and non-standard risks and how much of your loss
  ratio advantage is due to this mix?”
                                             489         488       488 
                                                                             477 
                                     m (£)



                                                                                              458
                                                                                              458 
                             d premium



                                                                                      459
                                                                                      459 

                                                                                                         438 
                                                                                                                     427 
                                                     + 35%
                     ge Earned




                                                                                                             + 19%
                Averag




                                                         374     369       372                         369 
                                              363                                    364      367 



                                             2002       2003    2004      2005      2006     2007     2008      2009
                                                                Admiral                      Market

*Source of market data: EMB analysis of FSA returns

                                                                                                                            19
                                        Admiral has lower premiums than some big players

                                     120%

                                     115%                  HBOS           NIG
                          eleases)




                                                                                                    UKI
                                     110%
                                                             Churchill                                                                                       AVIVA
              Ratio (net re




                                     105%
                                                       Fortis                                                                                                        Zurich
                                                                           RSA        DirectLine
                                     100%
     Combined R




                                     95%

                                     90%
2008 C




                                     85%
                                                                                                                  Admiral
                                     80%

                                     75%
                                            250                 300               350               400        450         500                         550       600          650
                                                                                                  Average earned premium (2008) 

                                 * Peers - sourced from EMB analysis of FSA returns, 2008. Bubble size denotes 2008 market share by vehicle numbers.

                                                                                                                                                                                    20
     What’s happening now? Pressure on market profitability

                 Market Combined Ratio – Pre & Post Releases (%)

                                                                                       08   09E

                                                                                      115   116
                                                                                                  “Is there still pressure
                                                                                            113
                                                                                      108         for price increases to
                                                                                                  continue through
                                                                                                  2010?”



                                                                                                   Pre-release combined
                                                                                                   ratio (% of premium)

                                                                                                   Post release
                                                                                                   Post-release combined
                                                                               11.5                ratio (% of premium)
                                                                         8.4
                                                                                      7.8          Releases (% of premium)
                                                                   6.5
      4    4.2                                               3.9
                   3.6                                                                      30
                                                                                            3.0
3                        2.3
                               0.2          1.3        1.3
                                     -1.8         -1

94    95   96      97    98    99    00     01    02   03    04    05    06    07     08    09E



                                                                                                                           21
     What’s happening now? Pressure on market profitability


 We                                                                  inflation?
“We know that rates are going up but how does this compare to claims inflation?”


                                      Claims          Increase in                  Lower 
                                                                      L
                                                                      Lower 
                     2008                               earned                  investment    2009
                                                                     releases
                               Severity   Frequency    premium                     return

  Expense ratio      30%                                                                      30%

  Loss ratio         85%         7%            ‐2%        4%                                  86%

  Pre‐release CoR    115%                                                                     116%

  Release             7%                                               ‐4%                    3%

  Post‐release CoR   108%                                                                     113%




                                                                                                     22
         Caveats on price momentum - Aviva
Brokers are still writing a lot of business via price comparison....

              Broker insurers                                                                                   Share of Sales (Confused)
                                                        Combined (Net)*
                                                   2008 C bi d (N t)*
                                                             (All channels)

               Allianz (1.5%)**                                  135%                                              36                  36
               HSBC (1 2%)
                    (1.2%)                                       126%
               MMA (1.2%)                                        126%
               Highway (1.8%)                                    125%
                                                                                                                   64                  64
               NIG (3 4%)
                   (3.4%)                                        115%

               Fortis (6.3%)                                     101%
                                                                                                                  H1 09               H2 09

                                                                                                              Direct      Broker
               Aviva (7.1%)                                      108%***

             q
Aviva fourth quarter sales announcement:

    “In our general insurance business we continue to write business for profit not for volume”
    “Returning to top-line growth is a priority in our UK general insurance business.”


    * Source EMB analysis of FSA returns
    ** Market Share (units), based on average policies in force in 2008, source EMB analysis of FSA returns
    *** Aviva sells both direct and via broker                                                                                                23
       Caveats on price momentum – aggressive directs



                                                     December 2008                           December 2009


                     Share of Admiral  Share of Admiral  Net Gain or Loss  Share of Admiral  Share of Admiral  Net Gain or Loss 
                      new customers       lapses to      of customers to  new customers         lapses to      of customers to 
                    from competitors     competitors        ompetitor      from competitors    competitors        ompetitor


  RBSI*                     11.5%                       16.2%        ‐4.7%      16.9%             12.8%              4.1%


 Esure**
 E    **                     5 6%
                             5.6%                        10.5%
                                                         10 5%       ‐4.9%
                                                                      4 9%      7.7%
                                                                                7 7%               4.8%
                                                                                                   4 8%              2 9%
                                                                                                                     2.9%


Swiftcover                   1.3%                        4.9%        ‐3.6%      3.1%               5.7%             ‐2.6%




  * Includes Direct Line, Churchill, and Privilege
  ** Includes Sheila’s Wheels
                                                                                                                               24
         What’s happening now? Admiral versus the market
               Expense ratio advantage (%)                                                                       Loss ratio advantage (%)

                                                    29         30                                                                                    88      85
   27        27        27       28        29
                                                                                                                                              81
                                                                                                                     72
                                                                                                                      2          74
                                                                                                  70      69
                                                                                                                                                72    71    72(-1)    71(+1)
             16                             16       17         17         17                                                      65
   15                  15        15
                                                                                                                         58                                          Change
                                                                                                            52                                                       v Jun 09
                                                                                                  50
  2002     2003     2004      2005      2006      2007        2008        2009                   2002      2003       2004       2005         2006   2007   2008      2009
                  Total Market (Earned Basis)                                                                  Market (excl Admiral) reported loss ratio (Dec 08)*
                  Admiral UK (Written Basis)                                                                                                              09)**
                                                                                                               Admiral projected ultimate loss ratio (Dec 09)

                                                                      Combined ratio advantage (%)
                                                                                                             117        115
                                                                                                  110
                                                         97                      99     102
                                                                     96

“How can Admiral shoehorn                                                                           88         88         89       88
in its favourite graphs?”
                 g p                                                                    80
                                                                                 73
                                                                     68
                                                       66
                                                     2002       2003         2004     2005       2006      2007       2008       2009
                                                                Market (excl Admiral) loss ratio plus expense ratio
                                                                Admiral projected ultimate loss ratio plus expense ratio
    * Reported accident year loss ratio with reserve releases allocated back to relevant accident year, source: EMB Analysis of FSA returns
    ** Ernst & Young projected ultimate loss ratios
                                                                                                                                                                                25
       What might happen in the future?




Warning
Scenarios only!
                  Scenario 1: Grow with PC market

                  Scenario 2: Grow from lower rate increases

                  Scenario 3: Cake & eat it




                                                               26
     What might happen in future? Price comparison market maturing

   “How long do you expect internet and price comparison sales to continue growing and where
   do you see growth coming from thereafter?”

                                                   Price comparison market maturing*



                                                                                                                           Growth in new business
                                                                                      33%                       28%        units from price
                                                         38%
                            49%                                                                                            comparison**

                                                                                                                21%
                                                                                      22%
                                                         24%
                            27%                                        +61%                             +20%              +14%

                                                                                      45%                       51%
                                                         38%
                            24%


                           2007                         2008                          2009                     2010E
                                    p       (    )
                           Price comparison ("PC")                                  (      )
                                                                           Internet (Non PC)                   Off‐line

*Source: management estimates
**Estimate based on PC market share and assuming total new business volumes increase 1% year on year.
                                                                                                                                                27
         What might happen in future? Scenario 1, grow with PC market

                                         Growth in Admiral's active vehicle base



Warning                        17%
Scenario only!




                                            11%
                                                          9%
                                                                      7%     7%          6%



                              2009A         2010        2011         2012    2013       2014
   Admiral market
   share                 7%        8%                     8%           9%     9%         10%
             Scenario assumptions:
                    PC grows at 14% in 2010 and at 5% per annum thereafter (PC has 62% market share in 2014)
                    Admiral has a flat ~15% share of PC new business
                    Admiral’s price increases are in line with the market


                                                                                                                28
          What might happen in future? Scenario 2, growth accelerated by
          lower rate increases than market
                            Growth in Admiral's active vehicle base                  “How do you optimise
                                                                                     profitability of the business
                                                                                     given the tension between
                                                                                     underwriting and ancillaries?”
Warning            17%
Scenario only!
                               15%
                                           12%         12%         12%         12%




                  2009A       2010        2011        2012        2013        2014
Admiral market      7%          8%          9%         10%         11%         12%
 h
share

                 Scenario assumptions:
                                 1,                                                            market
                 As for scenario 1 except Admiral annual price increases are 1% lower than the market.


                                                                                                                  29
What might happen in future? Scenario 3, Admiral have cake and
eat it
                  Combined ratio advantage (%)



                                                ?           ?
                                                    117         115
                                         110
                                                                              Is the outperformance
   97               99        102
          96                                                                  v. market widening?


                                           88        88           89   88
                              80
                    73
          68
   66
   2002   2003     2004       2005      2006        2007     2008      2009

            Market (excl Admiral) loss ratio plus expense ratio

            Admiral projected ultimate loss ratio plus expense ratio



                                                                                                      30
UK car insurance summary




Short view
      Good prospects of continued rate increases in 2010

Longer term
      There is still material growth potential in UK motor
      It may not be impossible that we can both grow rapidly and
       maintain our combined ratio advantage




                                                                    31
Cumulative performance of all non-UK in 2008




                                       International




                                                       32
A common question on international




        “How long do you give your international
                                even?
            operations to break even?”




                                                   33
         Modest investment

                             2009 profit before tax (£m)



                                                             (12)
                                                                                                                                    Total investment in
                                                                                                                                    international* is only
                                                                                                                                    5% of UK profits
                     228                                                                            216




            Total UK profits                     Total investment in                                Total
                                                    international

* Total UK profits includes everything except specific investments in international which total to £12m and include £9.5m Non UK car insurance, £0.8m non UK price comparison
and £2.0m pre launch costs.
                                                                                                                                                                                34
          International portfolio - the school report!


Launch                   Oct 06               Oct 07          May 08          Mar 09
Pricing                    ✔                    ?               ✔               n/a

                           ✔                    ✔               ✔
Claims                                                                                      New starters
                                                                                 /
                                                                                n/a
management
Acquisition costs                                               --              ✔
Eff ti b d
Effective brand            --                   --              --              ✔
Ancillaries                ✔                                    --
Cost control               --                                   --              --
                                          A challenge,                     Shows early
                     Improving! But                         Good start,
                                         we need to try                    promise, let’s
                     don’t take your                         but lots of
      y
Summary                                    harder to                          hope it
                                                                                 p
                     eye off the ball                       work ahead
                                            succeed                          continues


KEY: ✔ Pretty good
       Pretty good      Improving       --   Not bad
                                             Not bad   ? Don’t know
                                                         Don t know    Needs improvement
                                                                       Needs improvement


                                                                                                           35
 Spain
                                                   2008     2009
Active customers at period end                    55,400   50,300
Total itt         i
T t l written premium                             €26.2m €20 1
                                                  €26 2  €20.1m

Underwriting year loss ratio (end month 12)        102%      83%
Written expense ratio                               44%      65%
Combined Ratio                                     146%     148%

Admiral ancillary contribution per vehicle           €72     €73

Admiral result (PBT)                              (€1.5m) (€1.4m)

       Underwriting year loss ratio development                                               (€
                                                                        Total written premium (€m)
  Month
  M th           2007          2008           2009
    6            149%          107%           79%
   12            137%          102%           83%                             14   14    12
                                                                                               9     11
   18            136%          108%
                                                                        7
   24            135%          109%
   30            134%                                               1
   36            133%
                                                                H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09
                                                                H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09


                                                                                                            36
     Germany
                                                                                                             2008     2009
                   Active customers at period end                                                           15,000     35,000
                   T t l written premium
                   Total itt         i                                                                      €5.4m
                                                                                                            €5 4      €15 4
                                                                                                                      €15.4m
                   Underwriting year loss ratio (end month 12)                                               142%       109%
                   Written expense ratio                                                                     175%      113%*
                   Combined Ratio                                                                            317%       222%

                   Admiral result (before tax)                                                              (€2.9m) (€5.9m)*

                   Admiral ancillary contribution per vehicle                                                   €5        €7

                                                     st
                   Policyholders at 1 January 2009 / 2010                                                   30,000    35,000

                                                                                           Underwriting year loss ratio development
                                                                                             Month             2008          2009
                                                                                               6                  %
                                                                                                               118%             %
                                                                                                                             124%
                                                                                              12               142%          109%
                                                                                              18               134%
                                                                                              24               128%
* Includes a one off consultancy €1.0m expense, excluding this expense ratio = 95%, and result = (€4.9m).

                                                                                                                                      37
Italy
                                                    2008      2009
   Active customers at period end                    3,400    35,500
   Total written premium                            €1.1m
                                                    €1 1m    €12.5m
                                                             €12 5m
   Loss ratio - underwriting year (end month 12)               98%
   Written expense ratio                                       83%
   Combined R ti
   C bi d Ratio                                               181%

   Admiral result (PBT)                            (€0.7m)   (€2.7m)
   Admiral ancillary contribution per vehicle          €9       €10

           Knowledge transfer,
    comparison of loss ratio development
          Balumba (Oct 06)   ConTe (May 08)
  Month
             2007 UWY          2009 UWY
     6         149%               59%
    12         137%               98%
    18         136%
    24         135%
    30         134%
    36         133%


                                                                       38
    U.S.A.



   Why Virginia?
       Use file    l ti
        U & fil regulation
       Good size (6m private cars, over $4bn premium)
       Good low cost base
       Changing consumer, GEICO’s share of Virginia ~15% compared to their share of USA ~7.7%
       MD of Elephant Auto lives there!

   What’s been happening since launch in October 09?
       Building & training team: 50 staff in Richmond, Virginia
       Testing: friends & family, then media incl. TV from Jan 10
       Long term reinsurance support from Munich Re and Hannover Re



                                                                                                 39
It certainly snows in Virginia!




                                  40
      Non-UK price comparison
                                                                        Confused.com – the                              But beware direct comparison...
                                                                          early years (£m)                                  very different markets*

                                                                                                                    UK                                Spain

                                                                                         1.9 
                                                                                                                                    53%
                                                2009                                                               50%
                                       (post launch)

Revenue                                       €0.5m.                                                                                      30%
                                                                                                                          24%
                                                                                                                                                           12%
Expenses
Expenses**                                   (€1.4m)
                                             (€1 4m)                     02
                                                                         0.2 
                                                                                                 0.3                                                              3%
Profit                                       (€0.9m)                            ‐0.7                                  2002            2003                    2008

                                                                                                                 Direct as % of market
                                                                                                                 Di t % f          k t
                                                                         2002                2003

                                                                            Revenue          Profit
                                                                                                                 % new business from internet


We have launched price comparison operations in France and Italy:




* Source: management estimates, the Spain figures are for private motor market, research estimates of internet share of new business are varied, we have taken an ICEA
estimate but it should be taken as an indicative figure.
** Rastreator expenses exclude pre-launch costs.                                                                                                                         41
Long term partners help reduce risk




      pp
    Support Admiral’s low risk model:

             Takes the volatility out of our business

             R t          it l
              Return on capital > 50%

             Grow whilst generating cash




                                                         42
2009 - another great year


                                        New & extended
                                        N        t d d
                              No Debt     Reinsurance
                                          agreements
                                                          Return on
            2 international                              Capital 4%
                                                         C i l 54%
               launches

                                                                  Record
        Combined                                                  profits
        Ratio 92%
                                                                        Solid
     19% vehicle                                                      dividend
       growth                                                          growth


     Sunday Times Top                                                   g
                                                                      A great
      100 Company to
     work for 10 years                                                 year!



                                                                                 43
Appendix




       44
    Appendices


         y
    Summary income statement
   Balance sheet
   Group key performance indicators
   More questions: Admiral Group solvency
   More questions: UK car insurance – reserving
   More questions: UK car insurance - underwriting
   More questions: Investment portfolio
   UK car insurance coinsurance and reinsurance 2010
               p
    Admiral Group’s brands
   Disclaimer notice




                                                        45
                Summary income statement
                              UK car insurance                Price comparison          Non‐UK car insurance               Other                Admiral Group
                              2007     2008    2009          2007     2008     2009      2007    2008      2009    2007      2008    2009     2007    2008    2009

Turnover                      715.0     804.8      939.1      69.2     66.1     80.6     16.5     29.7     47.2     7.5       9.5     10.6    808.1     910.1     1077.5

Total premiums written        617.0     690.2      804.7                                 14.2     26.0     43.0                               631.3     716.3      847.7

Gross premiums written        246.7     309.5      402.3                                 14.2     25.1     37.6                               260.9     334.7      439.9
Net premiums written          136.9     185.5      217.7                                  4.9      8.9     14.8                               141.9     194.4      232.5

Net earned premium            140.3     161.9      199.1                                  2.0      7.9     12.8                               142.2     169.8      211.9

Investment 
income                         16.7       17.1        7.5                                 0.1      0.6      0.2                                16.8       17.7        7.7

               l
Net insurance claims          (    )
                              (97.0)   (
                                       (105.1))   (138.7)
                                                  (      )                               (2.8)
                                                                                         ( )      ( )
                                                                                                  (9.5)   (    )
                                                                                                          (13.0)                              (    )
                                                                                                                                              (99.8)   (114.6)
                                                                                                                                                       (      )   (151.7)
                                                                                                                                                                  (      )
Insurance related expenses    (19.9)     (26.0)     (30.3)                               (1.8)    (6.2)   (13.0)                              (21.7)     (32.2)     (43.3)

Underwriting 
result                         40.0       47.9       37.6                                (2.5)    (7.1)   (13.1)                               37.5       40.8       24.5

Profit commission               20.4      34.7       54.2                                                                                       20.4      34.7       54.2
Gross ancillary revenue         92.0    106.3      125.6                                   2.2      3.5      3.9                                94.2    109.8      129.5
Ancillary costs               (16.2)    (17.3)     (19.3)                                (0.4)    (0.6)    (0.7)                              (16.6)    (17.9)     (20.0)
Instalment income                5.9       8.2        8.8                                  0.0      0.2      0.3                                 6.0       8.4        9.2
Gladiator contribution                                                                                              2.0       2.8      2.4       2.0       2.8        2.4
Price comparison revenue                                       69.2     66.1     80.6                                                           69.2      66.1       80.6
Price comparison expenses                                    (32.4)   (40.5)   (55.6)                                                         (32.4)    (40.5)     (55.6)
Interest income                                                                                                     7.8       6.7      1.1       7.8       6.7        1.1
Other (mainly share 
scheme)                                                                                                            (5.9)     (8.4)   (10.1)    (5.9)     (8.4)     (10.1)

Profit / (loss) before tax    142.2     179.9      206.9      36.7     25.6     24.9     (0.7)    (4.1)    (9.5)    3.9       1.1     (6.6)   182.1     202.5      215.8



                                                                                                                                                                      46
Balance sheet
                                  2007      2008      2009
                                   £m        £m        £m
  ASSETS

  Property, plant and equipment     7.7     11.0      12.1
  Intangible assets                69.1     75.7      77.0
  Financial assets                481.8    586.9     630.9
  Reinsurance contracts           131.7    170.6     212.9
  Deferred income tax               1.6      0.0       0.0
  Trade and other receivables      22.6     25.5      32.7
  Cash and cash equivalents       155.8    144.3     211.8

  Total assets                    870.3   1,014.0   1,177.4

  EQUITY

  Share capital                     0.3      0.3       0.3
  Share premium                    13.1     13.1      13.1
  Retained earnings               223.8    251.8     281.8
  Other reserves                    0.4     10.3       5.6

  Total equity                    237.6    275.6     300.8

  LIABILITIES

  Insurance contracts             363.1    439.6     532.9
  Trade and other payables        239.6    270.1     306.8
  Deferred income tax               0.0     10.3       5.7
  Corporation tax liabilities      30.0     18.5      31.2

  Total liabilities               632.7    738.4     876.6

  Total liabilities and equity    870.3   1,014.0   1,177.4



                                                              47
                    Admiral Group Key Performance Indicators
                                           KPI              2004           2005           2006           2007           2008           2009


                     Revenue £m                                    540            627            698            808            910         1077
         ancial




                     Customers                               ,   ,
                                                            1,040,700      1,141,000 
                                                                            ,   ,          ,
                                                                                          1,284,700 
                                                                                               ,          ,   ,
                                                                                                         1,490,800      1,745,800 
                                                                                                                         ,   ,          ,   ,
                                                                                                                                       2,076,000 
Group Fina




                     Group pre‐tax profit £m                       98.1        119.5          147.3          182.1          202.5          215.8
                     Earnings per share                         28.4p          32.7p          39.8p          48.6p          54.9p          59.0p
                     Dividend                                      9.3p        24.6p          36.1p          43.8p          52.5p          57.5p


                     Vehicles covered                       1,007,600      1,104,500      1,240,200      1,381,700      1,587,200      1,861,800 
 UK Car Insurance




                     Total premiums £m                          470.4          533.6          566.0          617.0          690.2          804.7 
                     Reported combined ratio                   82.0%          84.9%          87.2%          83.4%          81.0%          84.9%
    C




                     Ancillary contribution per policy £           66.3           68.5           69.3           69.0           70.7           72.0 
                     UK car insurance pre‐tax profit               94.7        110.0          121.1          142.2          179.9          206.9 
       son




                     Total revenue £m                               3.2           12.0           38.5           69.2           66.1           80.6 
Comparis




                     Operating profit £m                            1.3            6.9           23.1           36.7           25.6           24.9 
Price




                     Operating margin ‐ Confused.com only          41%            58%            60%            53%            39%            32%


                     Vehicles covered
                     Vehicles covered                                                         2,200 
                                                                                              2 200        46 900
                                                                                                           46,900         73,700 
                                                                                                                          73 700        121 000
                                                                                                                                        121,000 
Non-UK Car




                     Total premiums £m                                                            0.6           14.2           26.0           43.0 
Insurance




                     Reported combined ratio                                                        0        232%           198%           204%
                     Non‐UK car insurance result £m                                           ( 0.1)         ( 0.7)         ( 4.1)         ( 9.5)




                                                                                                                                                      48
More questions: Admiral Group solvency


                                                                      What is the impact of solvency II?
                                                      £301m             We are building our own model
                            £275m                                     to comply with solvency II
                                                       62
    £238m                                                               We don’t expect a significant
                               62 
                               62                                      h      to l            i
                                                                      change t solvency requirements  t
                                                                      due to:
       62 
                                                                                Conservative reserving
                                                                                Reinsurance deals
                                                       178 
                              166                                               Low risk investments
      139


                                                                                     Surplus over pillar 1
                               47                       61                2007                     375%
       37
                                                                          2008                     350%
                                                                          2009                     290%
     2007                     2008                     2009
Pillar 1 solvency (£m)   Surplus over Pillar 1 (£m)   Goodwill (£m)




                                                                                                             49
       More questions: UK car insurance – reserving

                                                           Loss ratio development by underwriting year

What is the greatest risk to reserve                                                                         90               89            88
          adequacy?                                                                     85                        87
                                                                                             82                                                              84
                                                                    79                                             79              80            79
    What would be the impact of lowering the   73
                                                                         76                   75                     75
  discount rate on the Ogden tables by 1%?          70                    69                                                        72
                                                                                                  67
                                                      65                                               66
                                                                              63
                                                       60
     Conservative reserving                            56                     57 58
                                                          54
                                                               53
   Regulatory changes pose a risk
  but impact the whole market

   Reserves include allowance for a
  lower discount rate




                                                    2003             2004               2005                2006           2007          2008         2009
                                                                                                   Underwriting Year
                                                       2004 Accounts                   2004 Accounts                   2005 Accounts        2006 Accounts
                                                       2007 Accounts                   2008 Accounts                   2009 Accounts




                                                                                                                                                              50
 More questions: UK car insurance – underwriting

 7.5%         6.25%        10%          8.75%
              6 25%
              6.25%                                               thi         t in time d
                                                               At this moment i ti      do
  10%                      10%          8.75%
               10%                                40%       increases in premium rates,
                                         5%
                           7.5%                             market conditions etc make it
                                                           worthwhile increasing retention
                                                                    f d      iti ?
                                                                   of underwriting?
  55%                                    40%
              50%          45%                              Currently our reinsurance
                                                  35%       deals are preferable to
                                                            debt:
                                        12.5%
                                                               Exercised 2010 option
 27.5%        27.5%       27.5%          25%      25%        Extended Munich Re to
                                                             2016
                                                             Long term reinsurance
                                                             deals on International
 2008         2009        2010          2011      2012
                      Underwriting Year
Admiral         Option            Munich Re     Swiss Re
Hannover Re     New Re            Partner Re

                                                                                             51
                                   More questions: Investment portfolio
                            10%                           Asset class monthly  returns

                                                                                                                               Given i t
                                                                                                                               Gi           t t             i
                                                                                                                                     interest rates may remain
                             5%                                                                                         low for some time, would you consider taking
                                                                                                                                   more investment risk?
                    eturn




                                                                                                                               Would a rapidly increasing inflation
         nvestment re




                             0%
                                                                                                                            environment change your asset strategy?

                                                                                                                               Low risk profits
Monthly in




                                                                                                                             Capital light model: investment
                             ‐5%
                                                                                                                             income is less significant for Admiral
                                                                                                                                                     2008    2009
                            ‐10%                                                                                            Investment & interest 
                                                                                                                            I          &i
                                                                                                                                                     12%      4%
                                                                                                                               income as % PBT

                                                                                                                             We are unlikely to change our
                             15%
                            ‐15%                                                                                            investment strategy in the foreseeable
                                                                                                                            future.


                                   7 day LIBID
                                   7 d LIBID                  £ Gilts 1 ‐
                                                              £ Gilt 1 3                 £ Corporates
                                                                                         £C       t      FTSE 100 TSR
                                                                                                         FTSE 100 TSR

                                   Gilt and Corporate returns shown are based on Market IBoxx indices.

                                                                                                                                                                       52
       UK car insurance co-insurance and reinsurance 2010

                   Munich Re              Swiss Re                   New Re                  Hannover Re              Munich Re (pre
                                                                                                                      2007)
Share of premium   45%                    7.5%                       10%                     10%                      65%
Term               To at least Dec 2016                              Ends December 2011                               2002 to 2006
Cost to Admiral    Variable, depending    Fixed (not disclosed)      Fixed – 1.7% of         Fixed – 1.7% of          Variable, depending
                   on combined ratio                                 premium                 premium                  on combined ratio
Risk protection    Co-insurance                                   Starts at approximately 104%                        Co-insurance
Profit             Profit share % based   Starts at 100%. Fixed        Same as Swiss Re (though at different cost)    Profit share % based
commission         on combined ratio.     allocation to Swiss                                                         on combined ratio
                   Different %’s          Re, then 100% profit
                   operate in tranches    rebate to Admiral
                                          thereafter

                                          Below “x”% = 100%                      Below 98.3% = 100%                   Maximum = 29.5%
Funds withheld     No                     No                         Yes                     Yes                      No
Investment         Munich Re                             Admiral (provided combined ratio <100%)                      Munich Re
income
Instalment         Munich Re                                                Admiral                                   Munich Re
income
Ancillary income   Admiral                                                  Admiral                                   Admiral
Other terms        Reduces to 40% in      Reduces to 5.0% in         8.75% in 2011 and Admiral have an option to
                   2011. Improved PC      2011                       give further 5% (which would increase share to
                   terms from 2010                                   13.75%)
                                                                     13 75%)



                                                                                                                                             53
Admiral’s brands




                   54
Disclaimer notice

      The information contained in this document has not been independently verified and no representation or warranty, express or
      implied,            to                                   on     fairness accuracy
      implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information
      or opinions contained herein. None of the company, advisers or representatives shall have any liability whatsoever (in negligence
      or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with
      this document. Unless otherwise stated, all financial information contained herein is stated in accordance with generally accepted
      accounting principles in the UK at the date hereof.
           forward-looking
      The forward looking information contained herein has been prepared on the basis of a number of assumptions which may prove to
      be incorrect, and accordingly, actual results may vary.
      This document is being distributed only to, and is directed at (a) persons who have professional experience in matters relating to
      investments, being investment professionals as defined in article 19(5) of the Financial Services And Markets Act 2000 (Financial
      Promotion) Order 2005, as amended (the "Order") or (b) high net worth entities falling within article 49(2)(a) to (d) of the Order,
      and other persons to whom it may be lawfully be communicated under the Order ( such p
                p                     y            y                                     (all               g          g
                                                                                                  persons together being referred to as
      "Relevant Persons"). Any person who is not a Relevant Person should not act or rely on this document or any of its contents. Any
      investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only
      with Relevant Persons.
      The financial information set out in the presentation does not constitute the Company's statutory accounts in accordance with
      section 423 Companies Act 2006 for the year ended 31 December 2009. The statutory accounts for the year ended 31 December
      2009 will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and
      will be delivered to the Registrar of Companies following the Company’s Annual General Meeting.




                                                                                                                                            55

				
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